TALENT HUB WEEK TWO

P R E S E N T E D BY W

O R K F O R C E CO N N E C T I O

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& CO L L E G E O

F CE N T R A L F

LO R I DA

W E E K T W O – S E C T I O N T W O 1

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THE BUSINESS PLAN (BASICS)

JUMP-START YOUR PLANNING PROCESS1. Clearly define your business idea. Be able to state the

purpose and goal of your business using clear and simple language.

2. Examine your motives. Make sure you have a passion for owning a business and for this particular business.

3. Be willing to commit to the hours, discipline, learning and frustrations that are common to owning a business.

4. Conduct a competitive analysis in your market, including products, prices, promotions, advertising, distribution, quality and service.

5. Seek help from other small businesses, vendors, professionals, government agencies, employees, associations and trade shows.

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FIVE CRITICAL ELEMENTS – MUST HAVE!1. Description of product(s) and/or service(s) you

will offer in terms of business problem(s) to solve

2. Market description including target customers and your sales channels to reach the market

3. Overview of your business model and structure4. Your financial requirements and pro forma for

determining break-even analysis, profitability5. A basic SWOT analysis to determine positioning

and starting point

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WHAT’S YOUR HOOK?• A simple statement that highlights the

business problem you are able to solve• Ideally, ties in your personal

experience and differentiation• Basic way to frame the “pain” or

market opportunity

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Have you ever been away from your office and you suddenly

realized that you needed a file that you forgot to save on your

laptop?

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http://abc.go.com/shows/shark-tank/entrepreneurs

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8W W W. I N C O R P O RAT E . C O M / C M S / C O N T E N T / S TA RT _ A _ B I Z _ G U I D E . P D F

• Summarize Your Idea• Test Your Idea• Create a Business Plan• Choose a Structure• Focus on Funding• Get a Fix on Financing• Build a Team• Pin Down Your Company Name• Five Steps to Compliance• Control Cash and Credit• Project Your Cash Flow• Chart Your Business Progress

http://www.incorporate.com/score

BUSINESS PLANNING BASICS 1. Executive Summary. A two-page, succinct explanation of

your business and its activities, with an overview of your key objectives and business goals.

2. Business Description. Describes your perception of the company. How will your business grow and profit?

3. The Market and Competition. Largest section. Honestly acknowledges competition and describes how your company will differ from other providers.

4. The Product or Service. Describes the core of your business.

5. Marketing/Selling. Explains how you will access the marketplace. Will you advertise, attend trade shows, establish a Web site?

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BUSINESS PLANNING BASICS 6. Management and Personnel. Explains how you will

staff and manage your business. It includes one-paragraph profiles—or biographies—of yourself, partners and any other key team members.

7. Financial Data. Contains the balance sheet, profit-and-loss statement, break-even chart and cash flow analysis.

8. Investment. Based on cash flow, it includes what the investor will receive as a return.

9. Appendices. Includes testimonials from potential customers, research clips, charts and graphs relevant to your business.

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Complying With the Rules and Regulations

Federal taxes (e.g., corporate income, Social Security, Medicare, unemployment)

State taxes (corporate income; annual franchise; payroll, including unemployment, disability and workers’ compensation; sales; certain property)

Licenses and permits Federal, state and local licenses and permits (certification, operating and safety)

• Shareholder agreements• Company records (articles of

incorporation and bylaws; personnel; key transactions; minutes of meetings; etc.)

• State annual reports

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Cash is King!

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Areas to consider for performance measures include:

• Sales growth (number of calls, close rations, etc.)• Cash management (accounts receivable/payable, cashbalances, inventory levels, future projections)• Profit measures (key drivers of profitability)• Customer feedback scores (e.g., service ratings)

SMALL GROUP EXERCISE: MARKET PULSE CHECK• Form small groups of 3-4• Each person has 2 minutes to explain their

business in terms of business problem to solve, your unique value proposition, product(s) and/or service(s).

• In rapid iteration, brainstorm/discuss the potential customer base for this product/service and how to best reach them.

• You have 20 minutes total … approx. 5 minutes each.

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BREAK!